What Is Cryptocurrency Scam

Crypto currency scam is a type of investment fraud that steals money from people who want to invest in digital currencies such as Bit coin. The fraud itself can take many forms and into crypto currencies. It is becoming more popular with general interest. There are several things users can do to protect themselves from these crypto scams, but first you need to know what types of crypto scams exist and what you need to be aware of with the proliferation of reported crypto scams, it’s more important than ever to recognize common types of scams. Cryptocurrency scam recovery is a service which helps in analysing the scam and recover your money back from the scammer.

Phishing Scam

Phishing is a type of social engineering attack commonly used to steal user data such as login credentials and wallet information. Users are usually tricked into publishing sensitive information through phishing websites in order to trick victims into exposing sensitive information, such as connecting wallets to fake browser extensions. Phishing attacks can be targeted to individuals, but in most cases the attacker’s broader goal is to compromise one or more systems that the victim access.

Social Media Scam

If you’re browsing crypto-related content on social media such as Twitter or YouTube, it’s very likely that you’ll see the message “Send 1 bit coin and get 2 back!”. Related posts or comments. Many users understand that this is not true, but some think they can’t miss this opportunity and fall into trap with great hopes.

These scammers often impersonate people or celebrities to make their accounts about the same. It may also come with a verified badge. For example, during the six months ending March 31, 2021, there were reports that cryptocurrencies worth more than $ 2 million were routed to Elon Musk spoofing.

Crypto Wallet Scam

A crypto scam that has been gaining attention lately is the use of fake crypto wallets. These scammers create fake online or in mobile app stores. Scammers hold the key to these fake wallets and can steal internal funds at any time. In 2017, shortly after launch, there was a Bit coin Gold crypto scam in which fraudsters persuaded Bit coin Gold creators to promote the mybtgwallet.com website for storage. The creator of this site stole over $ 3 million in Bit coin and over $ 200,000 in other currencies.

One way to prevent crypto from being stolen by scammers is to use a well-established and well-known crypto wallet service. Use a wallet that contains a large number of downloads from the app store and good reviews, and follow only legitimate links. The safest system is to invest in a cold wallet that is not connected to the internet.

Initial Coin Offering Fraud

This type of crypto scam was much more common in the western part of ICO (Initial Coin Offering) 2017, but similar scams still exist today. This is when a scammer promises to be the next big thing, pretending to have created a new kind of crypto coin that makes huge profits, and simply disappears with investor funds.     When enough money is raised, the scammer receives the user’s money and disappears. These scams are more common in crypto space due to the fact that listing requirements are simple and it is more difficult to track down the missing funds. This type of scam is similar to rug pull, but the scam project doesn’t even have tokens, and users lose money waiting for it to hit their wallet.

Rugpull

Rugpull is a scam that almost everyone in the crypto industry has heard or sacrificed. In some hacks, there are outsiders who abuse the protocol from the outside, but when the project founder throws away all the tokens he manages into the open market and pulls the rug from under the investor, the project steadily It can be said that it was executed.

With the right combination of marketing hype and enthusiastic investors, the price of tokens can skyrocket very rapidly. When the founder thinks he has made enough money, he dumps the remaining tokens on the market and demands the “real” assets traded. This hurt prices and makes it very clear to investors what happened.

Conclusion

If you’ve already lost money to a crypto scam, your chances of recovering it are slim. However, you can help stop the scammers from hurting anyone else by reporting the crime. Whether you’ve fallen for a cryptoscam or just seen one online, it’s really important to report them as it helps officials investigate fraudulent companies and stop them from targeting other people.

As interest in crypto and the market grows, interest in cryptoscams is sure to grow along with it. In addition to the scams listed here, there will probably be new ones. It is important to always do your research and if you think something is too good to be true, there is a good chance that it is. Reclaim My Losses is a best fund recovery service company helps in reclaiming back the lost funds from the scammers.